Rio Tinto leaves the coal industry, devoting itself to the extraction of iron ore

Rio Tinto will have to stop calling yourself a diversified conglomerate and a coal mining company. The Australian company put up almost all its coal assets for sale, trying to close a budget gap of three billion dollars that formed last year.

The new CEO of RIO Tinto Sam Walsh consistently gets rid of unprofitable assets, exposing the company to the risk of hitting the iron ore market, which today forms more than 90% of Rio revenue.

According to the Commonwealth Bank report, the sale of coal assets today looks like a reasonable move. RIO problems in the coaling industry have accumulated since 2008, when the profitability of assets fell from 239% to 11% in 2012, not completely exceeding 9.1% of the weighted average price of the company's capital, which would indicate its bankruptcy.

The ability of Rio Tinto to attract $ 3 billion from the sale of coal shahs is in doubt in expert circles. She can sell two mines in Queensland, one of which is no longer working, and realize her share in the coal industry of the new South Wales.

According to liberum Capital, Rio did not provide sufficient data to assess the value of the proposed assets, but the value of all its energy assets in Australia, including uranium mines, does not exceed $ 3 billion, taking into account the raw materials that have developed today.